GLEN BURNIE BANCORP
For the period ended Jun 30, 2025. Filed Aug 14, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 14, 2025
GLBZ$4.57+0.4%Stored close · as of Jul 8, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-20.
0001558370-25-008010
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-14.
0001558370-25-011525
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 74 previous paragraphs and 95 current paragraphs.
40 unchanged; 13 reworded; 38 added; 19 removed; 2 previous and 4 current paragraphs rearranged.
Tables are not compared: 10 previous and 69 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (38)
Current report
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
Current report
This report, including information included or incorporated by reference in this report, contains statements which constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements may relate to, among other matters, the financial condition, results of operations, plans, objectives, future performance, and business of our company. Forward-looking statements are based on many assumptions and estimates and are not guarantees of future performance. Our actual results may differ materially from those anticipated in any forward-looking statements, as they will depend on many factors about which we are unsure, including many factors which are beyond our control. The words “may,” “approximately,” “is likely,” “would,” “could,” “should,” “will,” “expect,” “anticipate,” “predict,” “project,” “potential,” “continue,” “assume,” “believe,” “intend,” “plan,” “forecast,” “goal,” and “estimate,” as well as similar expressions, are meant to identify such forward-looking statements. Potential risks and uncertainties that could cause our actual results to differ materially from those anticipated in our forward-looking statements include, without limitation, the following:
Current report
Because of these and other risks and uncertainties, our actual future results may be materially different from the results indicated by any forward-looking statements. In addition, our past results of operations do not necessarily indicate our future results. Therefore, we caution you not to place undue reliance on our forward-looking information and statements.
Current report
All forward-looking statements in this report are based on information available to us as of the date of this report. Although we believe that the expectations reflected in our forward-looking statements are reasonable, we cannot guarantee that these expectations will be achieved. We undertake no obligation to publicly update or otherwise revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by applicable law.
Current report
The following discussion describes our results of operations for the three and six months ended June 30, 2025, as compared to the three and six months ended June 30, 2024 and analyzes our financial condition as of June 30, 2025 as compared to December 31, 2024. Like most community banks, we derive most of our income from interest we receive on our loans and investments. Our primary sources of funds for making these loans and investments are our deposits and borrowings, on which we pay interest. Consequently, one of the key measures of our success is our amount of net interest income, or the difference between the income on our interest-earning assets, such as loans and investments, and the expense on our interest-bearing liabilities, such as deposits and borrowings. Another key measure is the spread between the yield we earn on our interest-earning assets and the rate we pay on our interest-bearing liabilities. There are risks inherent in all loans, so we maintain an allowance for credit losses to absorb our estimate of expected credit losses on existing loans that
Current report
may become uncollectible. We establish and maintain this allowance by recording a provision for or release of credit losses against our earnings. In the following section, we have included a detailed discussion of this process.
Current report
In addition to earning interest on our loans and investments, we earn income through fees and other expenses we charge to our customers. We describe the various components of this non-interest income, as well as our non-interest expense, in the following discussion.
Current report
The following discussion and analysis identifies significant factors that have affected our financial position and operating results during the periods included in the accompanying financial statements. We encourage you to read this discussion and analysis in conjunction with the financial statements and the related notes and the other statistical information also included in this report.
Current report
Unless the context requires otherwise, references to the “Company,” “we,” “us,” “our,” or similar references mean Glen Burnie Bancorp. References to the “Bank” mean Bank of Glen Burnie.
Current report
RECENT INDUSTRY EVENTS
Current report
Effect of Governmental Monetary Policies. Our earnings are affected by domestic economic conditions and the monetary and fiscal policies of the United States government and its agencies. The Federal Reserve’s monetary policies have had, and are likely to continue to have, an important impact on the operating results of commercial banks through its power to implement national monetary policy in order, among other things, to curb inflation or combat a recession. The monetary policies of the Federal Reserve have major effects upon the levels of bank loans, investments, deposits and borrowings through its open market operations in United States government securities and through its regulation of the discount rate on borrowings of member banks and the reserve requirements against member banks’ deposits. It is not possible to predict the nature or impact of future changes in monetary and fiscal policies. The target rate range of federal funds was 5.25% - 5.50% from July 26, 2023, to September 17, 2024. On September 18, 2024, the FOMC reduced the target range of federal funds by 0.50% to 4.75% - 5.00%. There were two additional 25 basis point cuts to the target rate range of federal funds during the fourth quarter of 2024, lowering the target rate range to 4.25% - 4.50% at June 30, 2025, compared to 5.25% - 5.50% at June 30, 2024. Changes in market interest rates can have a significant impact on the level of income and expense recorded on a large portion of our interest-earning assets and interest-bearing liabilities, and on the market value of all interest-earning assets, other than those possessing a short term to maturity. Furthermore, changes in market interest rates can have a significant impact on the level of mortgage originations and related mortgage banking income.
Current report
COMPARISON OF RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED JUNE 30, 2025, TO THE THREE MONTHS ENDED JUNE 30, 2024
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Net Income
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Glen Burnie Bancorp, a Maryland corporation (the “Company”), through its subsidiary, The Bank of Glen Burnie, a Maryland banking corporation (the “Bank”), operates a commercial bank with six offices in Anne Arundel County Maryland. The Company reported a net loss attributable to common stockholders for the three-month period ended June 30, 2025, of -$212,000, or $(0.07) per basic and diluted share compared to a net loss of $204,000, or $(0.07) per basic and diluted share for the three-month period June 30, 2024. When compared to the second quarter of 2024, there were a number of offsetting differences that resulted in a net loss increase of $8,000.
Current report
Net Interest Income
Current report
Net interest income is our primary source of revenue. Net interest income is the difference between income earned on assets and interest paid on deposits and borrowings used to support such assets. Net interest income is determined by the rates earned on our interest-earning assets and the rates paid on our interest-bearing liabilities, the relative amounts of interest-earning assets and interest-bearing liabilities, and the degree of mismatch and the maturity and repricing characteristics of our interest-earning assets and interest-bearing liabilities.
Current report
Net interest income decreased $50,000, or 1.8%, to $2.7 million for the three months ended June 30, 2025, from $2.8 million for the three months ended June 30, 2024. Our net interest margin, on a taxable equivalent basis, was 3.13% for the three months ended June 30, 2025, compared to 3.10% for the three months ended June 30, 2024. Average earning assets were $359.3 million for the three months ended June 30, 2025, and $370.9 million in the same period of 2024.
Current report
Provision and Allowance for Credit Losses
Current report
The total allowance for credit losses (ACL) is composed of two parts: the ACL for loans and the ACL for unfunded commitments. The ACL for loans is further composed of the allowance for individually assessed loans, the allowance for collectively assessed expected losses, the allowance for collectively assessed qualitative adjustments, and the allowance for collectively assessed additional allowance. For the second quarter of 2025, the provision for credit loss allowance was $79,000 comprised of $57,000 release of ACL for loans and $136,000 provision of ACL for unfunded commitments. This compared to a provision for credit loss allowance of $600,000 for the second quarter of 2024 comprised of $526,000 provision of ACL for loans and $74,000 provision of ACL for unfunded commitments.
Current report
Non-interest Income and Non-interest Expense
Current report
Non-interest income during the three-month period ended June 30, 2025 was $220,000, a $21,000 decrease from $241,000 during the same period in 2024. The decrease was primarily related to other fees and commissions which decreased $20,000 largely due to lower levels of ATM usage and interchange fees.
Current report
Non-interest expense increased $432,000 during the three months ended June 30, 2025 to $3.3 million compared to $2.8 million during the second quarter of 2024 primarily due to the following:
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Comprehensive Income (Loss)
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COMPARISON OF RESULTS OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 2025, TO THE SIX MONTHS ENDED JUNE 30,2024
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Net Income
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Our net loss attributable to common stockholders for the six-month period ended June 30, 2025, of $59,000, or $(0.02) per basic and diluted share compared to a net loss of $201,000, or $(0.07) per basic and diluted share for the six-month period ended June 30, 2024. The decrease in net loss between the two periods is primarily due to the factors noted below.
Current report
Net Interest Income
Current report
Net interest income is our primary source of revenue. Net interest income is the difference between income earned on assets and interest paid on deposits and borrowings used to support such assets. Net interest income is determined by the rates earned on our interest-earning assets and the rates paid on our interest-bearing liabilities, the relative amounts of interest-earning assets and interest-bearing liabilities, and the degree of mismatch and the maturity and repricing characteristics of our interest-earning assets and interest-bearing liabilities.
Current report
Net interest income decreased $58,000, or 1.1%, to $5.3 million for the six months ended June 30, 2025, from $5.4 million for the six months ended June 30, 2024. Our net interest margin, on a taxable equivalent basis, was 3.06% for the six months ended June 30, 2025, compared to 3.02% for the six months ended June 30, 2024. Average earning assets were $357.7 million for the six months ended June 30, 2025, and $366.5 million in the same period of 2024.
Current report
interest expense and 94 basis points less in yield partially offsetting the increase in interest on deposits between the two periods.
Current report
Provision and Allowance for Credit Losses
Current report
The total allowance for credit losses (ACL) is composed of two parts: The ACL for loans and the ACL for unfunded commitments. The ACL for loans is further composed of the allowance for individually assessed loans, the allowance for collectively assessed expected losses, the allowance for collectively assessed qualitative adjustments, and the allowance for collectively assessed additional allowance. For the six months ended June 30, 2025, the release for credit loss allowance was $541,000 comprised of $203,000 release of ACL for loans and $338,000 release of ACL for unfunded commitments. This compared to a provision for credit loss allowance of $792,000 for the six months ended June 30,2024 comprised of $694,000 provision of ACL for loans and $97,000 provision of ACL for unfunded commitments.
Current report
Non-interest Income and Non-interest Expense
Current report
Non-interest income decreased $46,000 during the six-month period ended June 30, 2025, to $425,000 from $471,000 during the same period in 2024. The $46,000 decrease was primarily related to other fees and commissions which decreased $38,000 largely due to lower levels of ATM and usage and interchange fees plus a reduction of services charges on deposit accounts of $8,000.
Current report
Non-interest expense increased $858,000 during the six-months ended June 30, 2025, to $6.5 million compared to $5.7 million for the six-month period ended June 30, 2024, primarily due to the following:
Current report
●Legal, accounting, other professional fees increased $160,000 between the two periods due to additional costs related to internal audit and to professional fees associated with the launch of our new credit card program that were partially offset by reductions in data processing and item processing services of $12,000 in the first six months of 2025 when compared to the same period in 2024.
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●All other expenses increased $180,000 in the second quarter of 2025 when compared to the same quarter of 2024 due to growth and inflationary impacts.
Current report
Comprehensive Income (Loss)
Removed paragraphs (19)
Previous report
FORWARD-LOOKING STATEMENTS
Previous report
When used in this discussion and elsewhere in this Form 10-Q, the words or phrases “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project” or similar expressions are intended to identify “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. The Company cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made, and readers are advised that various factors could affect the Company’s financial performance and could cause the Company’s actual results for future periods to differ materially from those anticipated or projected. While it is impossible to identify all such factors, such factors include, but are not limited to, those factors identified in the Company’s periodic reports filed with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K.
Previous report
The Company does not undertake and specifically disclaims any obligation to update any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.
Previous report
Glen Burnie Bancorp, a Maryland corporation (the “Company”), through its subsidiary, The Bank of Glen Burnie, a Maryland banking corporation (the “Bank”), operates a commercial bank with seven offices in Anne Arundel County Maryland. The Company reported net income of $153,000 for the three-month period ended March 31, 2025 compared to net income of $3,000 for the same period in 2024. The increase is primarily the result of a $315,000 decrease in the provision of credit loss allowance and $498,000 decrease in the provision for losses on unfunded commitments included in other noninterest expenses, partially offset by a $209,000 increase in salary and employee benefits costs, a $129,000 increase in legal, accounting and other professional fees, and a $203,000 decrease in income tax benefit.
Previous report
Our liquidity position remained strong due to managed cash and cash equivalents, borrowing lines with the Federal Reserve Bank, the FHLB of Atlanta and correspondent banks, and the size and composition of the bond portfolio.
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RESULTS OF OPERATIONS
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Net income attributable to common stockholders for the three-month period ended March 31, 2025, was $153,000, or $0.05 per basic and diluted common share compared to net income of $3,000, or $0.00 per basic and diluted common share for the same period of 2024. The results for the three-month period ended March 31, 2025, were higher than the same period of 2024 primarily due to a $315,000 decrease in the provision of credit loss allowance and $498,000 decrease in the provision for losses on unfunded commitments included in other noninterest expenses, partially offset by a $209,000 increase in salary and employee benefits costs, a $129,000 increase in legal, accounting and other professional fees, and a $203,000 decrease in income tax benefit.
Previous report
Net Interest Income. The Company’s net interest income for the three-month period ended March 31, 2025 was $2.56 million, as compared to $2.57 million for the same period in 2024, a decrease of $8,000, or 0.3%. The $8,000 decrease in net interest income was primarily due to the $439,000 increase in interest expense related to higher balances on money market deposits, $193,000 lower interest and dividends on securities due to principal paydowns, and $77,000 lower interest on deposits with banks due to lower cash balances, offset by $494,000 higher interest income on loans due to higher yields and balances, and $206,000 lower interest on short term borrowings due to lower borrowing balances.
Previous report
Total interest income for the first quarter of 2025 increased $224,000, or 6.6% when compared to the same period in 2024, from $3.4 million in 2024 to $3.6 million in 2025. The primary driver of the increase was a $494,000, or 22.3%, increase in interest and fees on loans due to higher rates and higher average balance of total loans, partially offset by a $193,000, or 20.6%, decrease in interest and dividends on investment securities due to maturities and a decrease in interest on deposits with banks and federal funds due to a lower average balance and lower rates in the first quarter of 2025 compared to the first quarter of 2024.
Previous report
Interest expense for the first quarter of 2025 increased $233,000 from $833,000 for the same period in 2024 to $1.1 million, an increase of 28.0%. The increase was attributable to higher balances and rates on money market deposits and were partially offset by lower balances and rates on short-term borrowings for the first quarter of 2025.
Previous report
Net interest margin for the three-month period ended March 31, 2025 was 2.92% as compared to 2.86% for the three-month period ended March 31, 2024, an increase of 0.06%. The increase in the net interest margin is primarily due to increases in the yield on loans, offset by increases in rates on interest-bearing deposits and borrowed funds. Loan yields increased from 5.06% to 5.34% between the two periods while the cost of interest-bearing liabilities increased from 1.51% to 1.89% between the two periods.
Previous report
The average balance of interest-earning assets decreased $5.8 million while the yield increased 0.35% from 3.78% to 4.13%, when comparing the three-month periods ended March 31, 2025, and 2024, respectively. The average balance of interest-bearing funds increased $7.6 million during these same periods. The average balance of noninterest-bearing funds decreased $12.9 million, and the cost of funds increased 0.31%, when comparing the three-month periods ended March 31, 2025, and 2024.
Previous report
Average total loan balances increased $30.0 million to $205.9 million for the three-month period ended March 31, 2025, compared to $175.9 million for the same period of 2024, while the yield increased 0.28% from 5.06% to 5.34% during that same period. The increase in loan yields for the first quarter of 2025 reflected the runoff of the lower yielding loans and the origination of higher yielding loans in the current higher rate environment.
Previous report
Provision for Credit Losses on Loans. The Company released $146,000 of credit loss allowance on loans for the three-month period ended March 31, 2025 as compared to a provision of credit loss allowance of $169,000 for the same period in 2024. The decrease for the three-month period ended March 31, 2025, when compared to the three-month period ended March 31, 2024, primarily reflects changes in the data, assumptions and processes between periods. The allowance for credit loss on loans was $2.69 million on March 31, 2025, representing 1.30% of total loans, compared to $2.04 million, or 1.14% of total loans on March 31, 2024.
Previous report
Noninterest Income. Noninterest income decreased to $205,000 for the three-month period ended March 31, 2025, from $229,000 for the corresponding period in 2024, a decrease of $24,000, or 10.5%. This was primarily due to decreases in other fees and commissions.
Previous report
Noninterest Expenses. Noninterest expenses for the three-month period ended March 31, 2025 and 2024 were $2.79 million and $2.86 million, respectively, a decrease of $71,000, or 2.5%. The primary contributor to the decrease, when compared to the three-month period ended March 31, 2024, was the $498,000 decrease in the provision for losses on unfunded commitments included in other noninterest expenses that was partially offset by increases of $209,000 in salary and employee benefits, $129,000 in legal, accounting, and other professional fees and $40,000 in loan collection costs.
Previous report
Income Taxes. During the three-month period ended March 31, 2025, the Company recorded an income tax benefit of $29,000 compared to a benefit of $232,000 for the same period in 2024, a $203,000, or 87.5% decrease. The income tax benefit for the first quarter of 2025 was lower than the same period in 2024 primarily due to the $353,000 higher pre-tax income for the first quarter of 2025 and partly due to a benefit of $87,000 in the first quarter of 2024 associated with amended Maryland tax returns for two earlier years.
Previous report
General. The Company’s assets decreased to $358.0 million at March 31, 2025 from $359.0 million at December 31, 2024, a decrease of $1.0 million or 0.3%, primarily due to an $0.8 million decrease in cash and cash equivalents, a $1.3 million decrease in investment securities available for sale, a $0.5 million decrease in restricted equity securities and a $0.5 million decrease in deferred tax assets, net, that were partially offset by a $2.3 million increase in loans. Loans, net totaled $204.7 million at March 31, 2025, an increase of $2.3 million or 1.1%, from $202.4 million at December 31, 2024. The increase was primarily attributable to increases in single-family residential, commercial and industrial and automobile loans partially offset by decreases in construction and land, commercial real estate and consumer loans. Cash and cash equivalents as of March 31, 2025, totaled $23.7** million, a decrease of $0.8 million, or 3.2% from $24.5 million on December 31, 2024. Investment securities available for sale as of March 31, 2025, totaled $106.6 **million, a decrease of $1.3 million, or 1.2% from $107.9 million on December 31, 2024. Restricted equity securities at March 31, 2025 totaled $1.2 million, a decrease of $0.5 million, or 28.1% from $1.7 million on December 31, 2024.
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Deposits as of March 31, 2025, totaled $317.3 million, an increase of $8.1 million, or 2.6%, from $309.2 million on December 31, 2024. Demand deposits as of March 31, 2025 totaled $104.5 million, an increase of $3.7 million, or 3.7% from $100.7 million at December 31, 2024. Interest-bearing checking accounts as of March 31, 2025 totaled $24.9 million, a decrease of $0.6 million, or 2.5% from $25.5 million at December 31, 2024. Savings accounts as of March 31, 2025 totaled $73.7 million, a decrease of $1.8 million, or 2.3%, from $75.4 million at December 31, 2024. Money market accounts as of March 31, 2025 totaled $89.2 million, an increase of $7.7 million, or 9.4%, from $81.5 million at December 31, 2024. Time deposits of $250,000 or less totaled $24.5 million on March 31, 2025, a $0.4 million or a 1.5% decrease from $24.9 million at December 31, 2024. Time deposits over $250,000 totaled $0.6 million on March 31, 2025, a $0.6 million, or 49.6% decrease from $1.1 million at December 31, 2024.
Reworded paragraphs (13)
Previous wording
Comprehensive Income (Loss). In accordance with regulatory requirements, the Company reports comprehensive income (loss) in its financial statements. Comprehensive income (loss) consists of the Company’s net income, adjusted for unrealized gains and losses on the Bank’s portfolio of investment securities. For the first quarter of 2025, the comprehensive income, net of tax, totaled $1.4 million compared to comprehensive loss in the amount of $0.9 million for the same period in 2024. The $2.3 million increase in comprehensive income was due to a $2.2 million after tax decrease in unrealized losses on securities for the quarter ended March 31, 2025 compared to the amount of after tax unrealized losses on securities for the comparable prior year period and to the increase of $150,000 increase in reported net income for the first quarter of 2025 over the first quarter of 2024.
Current wording
In accordance with regulatory requirements, the Company reports comprehensive income (loss) in its financial statements. Comprehensive income (loss) consists of the Company’s net income (loss), adjusted for unrealized gains and losses on the Bank’s portfolio of investment securities. For the second quarter of 2025, the comprehensive loss, net of tax, totaled $248,000 compared to a comprehensive loss in the amount of $400,000 for the same period in 2024. The $152,000 decrease in comprehensive loss was due to a $160,000 net of tax decrease in unrealized losses on securities for the quarter ended June 30, 2025, compared to the amount of after-tax unrealized losses on securities for the comparable prior year period, and to the increase of $8,000 in reported net loss for the second quarter of 2025 over the second quarter of 2024.
Previous wording
Total assets decreased to $358.0 million on March 31, 2025, a decrease of $1.0 million from December 31, 2024. Cash and cash equivalents decreased by $788,000 million or 3.2%, during the first three months of 2025. The Bank’s loan portfolio increased by $2.2 million or 1.1% and investment securities available for sale declined by $1.3 million or 1.2% over the same period. The Company’s allowance for credit losses was $2.69 million as of March 31, 2025, compared to $2.84 million at December 31, 2024, a decrease of $150,000 or 5.3%. Total deposits increased $8.1 million, or 2.6%, during the first three months of 2025 and short-term borrowings decreased by $10.0 million to $20.0 million on March 31, 2025 from $30.0 million at year end 2024. Shareholder’s equity was $19.2 million on March 31, 2025, a $1.4 million or 7.7% increase, as compared to $17.8 million on December 31, 2024. The increase was primarily due to unrealized losses, net of taxes, on securities available for sale amounting to $17.8 million on March 31, 2025, compared to $19.0 million at December 31, 2024. The Company has strong liquidity and capital positions that provide ample capacity for future growth. The Bank’s total regulatory capital to risk weighted assets was 16.60% on March 31, 2025, as compared to 16.40% on December 31, 2024.
Current wording
Total assets were $351.0 million on June 30, 2025, a decrease of $8.2 million from December 31, 2024. Cash and cash equivalents decreased by $11.8 million or 48.2%, during the first six months of 2025. The Bank’s loan portfolio increased by $8.1 million or 4.0%, and investment securities available for sale declined by $3.4 million or 3.1% over the same period. The Company’s allowance for credit losses was $2.59 million as of June 30, 2025, compared to $2.84 million at December 31, 2024, a decrease of $252,000 or 8.9%. Total deposits increased $8.1 million, or 2.6%, during the first six months of 2025 and short-term borrowings decreased by $17.0 million to $13.0 million on June 30, 2025, from $30.0 million at year end 2024. Stockholder’s equity was $18.9 million on June 30, 2025, a $1.1 million or
Previous wording
Return on average assets for the three-month period ended March 31, 2025, was 0.17% compared to 0% for the three-month period ended March 31, 2024. Return on average equity for the three-month period ended March 31, 2025, was 3.22% compared to 0.06% for the three-month period ended March 31, 2024. Release of provision for credit allowance on loans and unfunded commitments primarily drove the higher return on average assets and average equity.
Current wording
Return on average assets for the three-and six-month periods ended June 30, 2025, was -0.24% and -0.03% compared to -0.22% and -0.11% for the three- and six-month periods ended June 30, 2024. Return on average equity for the three- and six-month periods ended June 30, 2025, was -4.30% and -0.61% compared to -4.72%and -2.22% for the three- and six-month periods ended June 30, 2024.
Previous wording
The book value per share of Bancorp’s common stock was $6.61 on March 31, 2025, as compared to $6.14 per share on December 31, 2024. The increase primarily resulted from the lower unrealized losses on the Company’s available for sale securities of $17.8 million at March 31, 2025 compared to $19.0 million at December 31, 2024.
Current wording
The book value per share of Bancorp’s common stock was $6.53 on June 30, 2025, as compared to $6.14 per share on December 31, 2024. The increase was the result of lower unrealized losses on the Company’s available for sale securities of $17.8 million at June 30, 2025 compared to $19.0 million at December 31, 2024.
Previous wording
Loans are placed on nonaccrual status when they are past due 90 days as to either principal or interest or when, in the opinion of management, the collection of all interest and/or principal is in doubt. Placing a loan on nonaccrual status means that we no longer accrue interest or amortize deferred fees or costs on such loans and reverse any interest previously accrued but not collected. Management may grant a waiver from nonaccrual status for a 90 day past due loan that is both well secured and in the process of collection. A loan remains on nonaccrual status until the loan is current as
Current wording
Loans are placed on nonaccrual status when they are past due 90 days as to either principal or interest or when, in the opinion of management, the collection of all interest and/or principal is in doubt. Placing a loan on nonaccrual status means that we no longer accrue interest or amortize deferred fees or costs on such loans and reverse any interest previously accrued but not collected. Management may grant a waiver from nonaccrual status for a 90 day past due loan that is both well secured and in the process of collection. A loan remains on nonaccrual status until the loan is current as to payment of both principal and interest and the borrower has demonstrated the ability to make payments in accordance with the terms of the loan and remain current.
Previous wording
At March 31, 2025, impaired loans totaled $1.9 million, net of specific reserves. Included in the impaired loans total was $1.1 million in loans classified as nonaccrual loans. At March 31, 2025, impaired loans included restructured loans to borrowers with financial difficulty totaling $25,000. Borrowers under all other restructured loans are paying in accordance with the terms of the modified loan agreement and have been placed on accrual status after a period of performance with the restructured terms.
Current wording
At June 30, 2025, impaired loans totaled $2.4 million, net of specific reserves. Included in the impaired loans total was $1.1 million in loans classified as nonaccrual loans. At June 30, 2025, impaired loans included restructured loans to borrowers with financial difficulty totaling $24,000. Borrowers under all other restructured loans are paying in accordance with the terms of the modified loan agreement and have been placed on accrual status after a period of performance with the restructured terms.
Previous wording
For the three months ended March 31, 2025, the Bank accrued $124,000 for its projected 401(k) match contribution as well as other profit sharing benefits.
Current wording
For the six months ended June 30, 2025, the Bank accrued $257,000 for its projected 401(k) match contribution as well as other profit sharing benefits.
Previous wording
At March 31, 2025, the simulation analysis indicated that the Bank is in an asset sensitive position in all falling rate scenarios but is liability sensitive in the rising rate shock scenarios. Management strives to optimize the level of higher costing fixed rate funding instruments, while seeking to increase assets that are more fluid in their repricing. An asset sensitive position, theoretically, is favorable in a rising rate environment since more assets than liabilities will re-price in a given time frame as interest rates rise. Similarly, a liability sensitive position, theoretically, is favorable in a
Current wording
At June 30, 2025, the simulation analysis indicated that the Bank is in a modest asset sensitive position in falling rate scenarios but is liability sensitive in the rising rate shock scenarios. Management strives to optimize the level of higher costing fixed rate funding instruments, while seeking to increase assets that are more fluid in their repricing. An asset sensitive position, theoretically, is favorable in a rising rate environment since more assets than liabilities will re-price in a given time frame as interest rates rise. Similarly, a liability sensitive position, theoretically, is favorable in a
Previous wording
In an increasing interest rate environment, the Company’s interest income increases at a slightly lower rate compared with changes in its total interest expense, thereby resulting in a slightly liability sensitive profile, primarily in the +300 bps and +400 bps shock scenarios. In a declining interest rate environment, the decreases in the Company’s interest income will be greater than decreases in its already low interest expense, thereby resulting in lower net interest income. Overall, net interest income exhibits limited changes in rates down scenarios, with net interest income decreasing by 6.95% in the -400 bps shock scenario. In a rising interest rate environment, the Company is positioned to generate less economic value of equity as the duration of the assets is longer than the duration of the liabilities, with liabilities repricing more quickly than our assets. Conversely, the Company’s economic value of equity increases in most falling interest rate environments as the longer duration of the assets benefits the Company in falling rate scenarios. Thus, the economic value of equity increases. Overall, economic value of equity exhibits minor changes in rates down scenarios and is fairly balanced.
Current wording
In an increasing interest rate environment, the Company’s interest income increases at a slightly lower rate compared with changes in its total interest expense, thereby resulting in a slightly liability sensitive profile. In a declining interest rate environment, the decreases in the Company’s interest income will be greater than decreases in its interest expense, thereby resulting in lower net interest income. Overall, net interest income exhibits limited changes in rates down scenarios. In a rising interest rate environment, the Company is positioned to generate less economic value of equity as the duration of the assets is longer than the duration of the liabilities, with liabilities repricing more quickly than our assets. Conversely, the Company’s economic value of equity increases in most falling interest rate environments as the longer duration of the assets benefits the Company in falling rate scenarios. Thus, the economic value of equity increases. Overall, economic value of equity exhibits acceptable changes in rates down scenarios within policy guidelines.
Previous wording
The Bank’s most liquid assets are cash and cash equivalents, which are cash on hand, amounts due from financial institutions, federal funds sold, certificates of deposit with other financial institutions that have an original maturity of three months or less and money market mutual funds. The levels of such assets are dependent on the Bank’s operating, financing, and investment activities at any given time. The variations in levels of cash and cash equivalents are influenced by deposit flows and anticipated future deposit flows. The Bank’s cash and cash equivalents (cash due from banks, interest-bearing deposits in other financial institutions, and federal funds sold), as of March 31, 2025, totaled $23.7 million, an increase of $0.8 million, or 3.2% from $24.5 million at December 31, 2024.
Current wording
The Bank’s most liquid assets are cash and cash equivalents, which are cash on hand, amounts due from financial institutions, federal funds sold, certificates of deposit with other financial institutions that have an original maturity of three months or less and money market mutual funds. The levels of such assets are dependent on the Bank’s operating, financing, and investment activities at any given time. The variations in levels of cash and cash equivalents are influenced by deposit flows and anticipated future deposit flows. The Bank’s cash and cash equivalents (cash due from banks, interest-bearing deposits in other financial institutions, and federal funds sold), as of June 30, 2025, totaled $12.7 million, a decrease of $11.8 million, or 48.2% from $24.5 million at December 31, 2024.
Previous wording
As of March 31, 2025, the Bank was permitted to draw on an $89.7 million line of credit from the FHLB of Atlanta. Short-term borrowings under the line totaled $20.0 million and $30.0 million at March 31, 2025 and December 31, 2024, respectively. Borrowings under the line are secured by a floating lien on the Bank’s residential mortgage loans and investment securities. As of March 31, 2025 and December 31, 2024, the Bank had $0 in outstanding short-term borrowings from the Federal Reserve Bank (“FRB”) discount window. Borrowings under the line are secured by qualifying collateral.
Current wording
As of June 30, 2025, the Bank was permitted to draw on an $89.5 million line of credit from the FHLB of Atlanta. Short-term borrowings under the line totaled $13.0 million and $30.0 million at June 30, 2025 and December 31, 2024, respectively. Borrowings under the line are secured by a floating lien on the Bank’s residential mortgage loans and investment securities. As of June 30, 2025 and December 31, 2024, the Bank had $0 in outstanding short-term borrowings from the Federal Reserve Bank (“FRB”) discount window. Borrowings under the line are secured by qualifying collateral.
Previous wording
The Company’s stockholders’ equity increased $1.4 million, or 7.7% during the three-month period ended March 31, 2025. The increase in equity was primarily due to a $1.2 million decrease in the after-tax net unrealized holding loss on securities available for sale and the $153,000 net income in the period ended March 31, 2025.
Current wording
The Company’s stockholders’ equity increased $1.1 million, or 6.3% during the six-month period ended June 30, 2025. The increase in equity was primarily due to a $1.2 million decrease in the after-tax net unrealized holding loss on securities available for sale and the $212,000 net loss in the period ended June 30, 2025.
Previous wording
The regulations impose several sets of capital adequacy requirements: minimum leverage rules, which require bank holding companies and banks to maintain a specified minimum ratio of capital to total assets, and risk-based capital rules, which require the maintenance of specified minimum ratios of capital to “risk-weighted” assets. In addition, there are requirements to maintain a capital conservation buffer which raised the minimum required common equity Tier 1 capital ratio to 7.00%, the Tier 1 capital ratio to 8.50% and the total capital ratio to 10.50%. At March 31, 2025, the Bank was in full compliance with these guidelines with a Tier 1 leverage ratio of 9.71%, a Tier 1 risk-based capital ratio of 15.42%, a common equity Tier 1 risk-based capital ratio of 15.42%, and a total risk-based capital ratio of 16.60%.
Current wording
The regulations impose several sets of capital adequacy requirements: minimum leverage rules, which require bank holding companies and banks to maintain a specified minimum ratio of capital to total assets, and risk-based capital rules, which require the maintenance of specified minimum ratios of capital to “risk-weighted” assets. In addition, there are requirements to maintain a capital conservation buffer which raised the minimum required common equity Tier 1 capital ratio to 7.00%, the Tier 1 capital ratio to 8.50% and the total capital ratio to 10.50%. At June 30, 2025, the Bank was in full compliance with these guidelines with a Tier 1 leverage ratio of 9.59%, a Tier 1 risk-based capital ratio of 14.91%, a common equity Tier 1 risk-based capital ratio of 14.91%, and a total risk-based capital ratio of 16.06%.
Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
The following tables set forth, for the periods indicated, information regarding the average balances of interest-earning assets and interest-bearing liabilities, the amount of interest income and interest expense and the resulting yields on average interest-earning assets and rates paid on average interest-bearing liabilities.
Current report — wording carried from elsewhere
In accordance with regulatory requirements, the Company reports comprehensive income (loss) in its financial statements. Comprehensive income (loss) consists of the Company’s net income (loss), adjusted for unrealized gains and losses on the Bank’s portfolio of investment securities. For the first six months of 2025, the comprehensive income, net of tax, totaled $1.1 million compared to a comprehensive loss in the amount of $1.3 million for the same period in 2024. The $2.5 million improvement between the two periods was due to a $2.3 million net of tax increase in unrealized income on securities for the first six months of 2025, compared to the amount of after-tax unrealized losses on securities for the comparable prior year period and to the decrease of $142,000 in reported net loss for the first six months of 2025 over the same period in 2024.
Current report — wording carried from elsewhere
6.2% increase, as compared to $17.8 million on December 31, 2024. The increase was primarily due to unrealized losses, net of taxes, on securities available for sale amounting to $17.8 million on June 30, 2025, compared to $19.0 million at December 31, 2024.
Current report — wording carried from elsewhere
As of June 30, 2025, the Bank remained above all “well-capitalized” regulatory requirement levels. The Company has strong liquidity and capital positions that provide ample capacity for future growth. The Bank’s total regulatory capital to risk weighted assets was 16.1% on June 30, 2025, as compared to 16.4% on December 31, 2024. The Bank’s tier 1 risk-based capital ratio was 14.9% at June 30, 2025, compared to 15.2% at December 31, 2024.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
At March 31, 2025, the Bank remained above all “well-capitalized” regulatory requirement levels. The Bank’s tier 1 risk-based capital ratio was 15.42% at March 31, 2025, compared to 15.15% at December 31, 2024.
Previous report — wording carried elsewhere
to payment of both principal and interest and the borrower has demonstrated the ability to make payments in accordance with the terms of the loan and remain current.